The new Dalby Bio-Refinery - built on a former green-field site on Queensland’s Western Downs - holds the key to transforming truck-loads of sorghum into quality green fuel, plus a number of equally significant by-products.

Caltex reportedly has agreed to buy at least 30 million litres of ethanol annually for three years from the new Dalby Bio-Refinery operation.

It’s been a long haul for all involved – a journey that began more than five years ago when the concept of locating a $140 million ethanol plant amongst some of the State’s prime sorghum-growing country was first mooted.

Initially, the world in general and the US in particular championed the renewable fuels revolution that saw thousands of hectares of farmland earmarked for producing ethanol, principally from corn.

At one stage the US had 125 operational ethanol plants with 80 or so more due to come on-stream as fast as they could be completed.

While ethanol was initially seen as playing an important part in combating climate change since it produces ’cleaner’ emissions when compared with fossil fuels, last year the United Nations appeared to have a change of heart when one official gained global mileage by suggesting ‘green energy’ was leading to thousands of acres of rain forest being cleared to grow crops for fuel, labelling it “a crime against humanity”.

The Bligh State Government last year flagged its commitment to a five per cent ethanol mandate by 2010, although NSW and Victoria now look to be backing away from what they label as the distortionary mandates of ethanol content in fuel.

Extract from report to appear in Stock & Land, January 8.